Israeli ecommerce financing partner 8fig has completed a $140 million Series B debt and equity financing round. Founded three years ago, 8fig was one of the first companies to develop a platform based on automation for planning, operating and financing business plans for ecommerce players, and this is the company’s biggest financing round to date. 8fig has 90 employees in two main centers in Tel Aviv, and Austin, Texas and following the new investment, the company will hire dozens of employees in the coming months.
8fig raised $100 million in debt and $40 million in equity. The financing round was led by US investment company Koch Disruptive Technologies with the participation of existing investors Battery Ventures, UK venture capital fund Localglobe, Israeli venture capital fund Hetz, the Jesselson family investment fund, and Silicon Valley Bank, a division of First Citizens Bank in the US. Since it was founded in 2020, the company has raised $196.5 million (including the current financing round). 8fig completed its $50 million Series A financing round in November 2021. The company was founded by CEO Yaron Shapira, Assaf Dagan and Roei Yellin.
8fig, as its name indicates, allows ecommerce (electronic commerce) sellers to increase their annual revenue from six-figures (hundreds of thousands of dollars) to an annual revenue of eight-figures (tens of millions of dollars). The company achieves this by understanding the specific needs of sellers and the industry in which they are operating, and by building AI-based models that help the sellers manage cash flow and adjust the supply chain. Since it was founded, 8fig has introduced AI to the online commerce sector and built the first AI CFO. Through this the company provides ecommerce sellers with a CFO based on AI that assists them in managing the challenging financial sector, which requires sellers to allocate many resources. This is combined with financing that provides the ecommerce sellers with options to rapidly grow.
The main problem facing ecommerce sellers that reach six-figure revenue is the ability to continue growing without harming its independence. 8fig’s platform allows it to build for itself a business growth plan and fully finance it. In contrast to conventional thinking, 8fig’s solution is not a credit line or loan because they are not contingent on the way in which the company receiving the credit or loan invests the money extended to them. The financing plan that 8fig provides assists the sellers in operating and planning its cash flow in the most optimal way for it, and its is contingent on the plan expanding the business in the short-medium term, which 8fig helps it build, that is, it is invested according to the change in the size of its revenue, or in its supply chain. Building the growth plan, as mentioned, is based on automation, and thus allows 8fig to conduct plans for thousands of different customers at the same time.
“During this period of economic uncertainty, ecommerce businesses are struggling to reach their full potential,” said Yaron Shapira, cofounder and CEO of 8fig. “The global macroeconomic challenges we are experiencing make it difficult for ecommerce business owners to access the resources they need to succeed. 8fig is providing these online sellers with the financial support and tools necessary to thrive in any economic climate. The latest funding round has proven that the market has great confidence in 8fig and the important role 8fig continues to play in the ongoing growth of ecommerce.”
Since it was founded, 8fig has provided financing of more than $500 million to online sellers and this turnover has resulted in huge growth for the company, which increased its customer-base and revenue by 900% and 800% respectively, as of 2022. During 2022, 8fig tripled its workforce to 90 employees. In addition, the company continues to develop the capabilities of its platform, and it recently launched a mobile app so that each customer can manage their business easily from their mobile devices.
Published by Globes, Israel business news – en.globes.co.il – on May 9, 2023.
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